Can I talk them down?

[Anonymous]

I currently have a credit card account with a balance of about $3500. I recently received a large commission check from work and have the cash in hand to pay it off and make the balance $0. I am about to do so, but wanted see if you thought I should just pay the $3500 or call the company (Chase) to see if I should try to negotiate a lower payoff payment. Not sure if this is relevant but my credit score is probably around the low to mid 600s. *The account is closed and has been for several years, but I have been making more than the minimum payment every month, sometimes twice a month. *The Apr is 29.9%. (Yikes) ***I will possibly be buying a house in 9 – 15 months, I would rather pay the whole $3500 than risk have a(nother) bad item on my credit report. Thanks in advance!

[Anonymous]

I don't know if I'm right but I think you can do this http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659 I hope the experts here will be able to help you better good luck........

[Anonymous]

Pay the entire amount. If you "Settle" for less the TL on your credit report will be noted as such. No need to add another negative comment while your trying to remove them.

[Anonymous]

I'd pay it down to $100
Make $1 over min payments until they re-open or it is paid off.

I did this with one of the DW's accounts (as paying it off completely would have killed her utl)

The card was "closed be grantor" We managed to have them re-instate the account.

[Anonymous]

Timothy, so you are saying pay it almost all off and leave a balance there of $100, then just pay $1 more than the minimum and they may reopen the account? To tell you the truth, I don't care of they do. My credit rating is not great but I will be paying off my current credit cards by the end of the month, will go from a $2500 balance on $3000 line of credit to $300b/$3000 loc. (I am at a $1800 balance today!)

Anyway, I think you are telling me to do that so I can have the card back again. I don't need the card, but I do need a better credit rating for a house purchase. Everything I do right now is to 1. Pay off balances and stop paying interest and 2. Improve my credit rating. Thanks!

Message Edited by Rochester9 on 10-02-2007 08:58 PM

[RobertEG]

In my opinion, paying down any debt will reduce interest, and thus put more money in the pockets.  That will eventually manifest itself in a higher FICO.  Yet playing a daily FICO game of worrying about the impact of actions on current, daily  credit score ONLY has meaning if one is about to apply for new credit.  Otherwise, it is just a mind game, with no meaning.  FICO has no ,memory, except for the baddies.  Higher FICO does necessarily not mean higher credit stability.  What you DONT want is to  pay the credit card villians each month in interest, unless immediate new credit is needed.  If not seeking immediate new credit, Ignore FICO score for six months, pay down debt, and both the wallet and the FICO score will become fatter!

[Anonymous]

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@Anonymous wrote:
I currently have a credit card account with a balance of about $3500. I recently received a large commission check from work and have the cash in hand to pay it off and make the balance $0. I am about to do so, but wanted see if you thought I should just pay the $3500 or call the company (Chase) to see if I should try to negotiate a lower payoff payment. Not sure if this is relevant but my credit score is probably around the low to mid 600s. *The account is closed and has been for several years, but I have been making more than the minimum payment every month, sometimes twice a month. *The Apr is 29.9%. (Yikes) ***I will possibly be buying a house in 9 – 15 months, I would rather pay the whole $3500 than risk have a(nother) bad item on my credit report. Thanks in advance!

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Rochester, when I read your post, I cringed! Yikes! $3,500 balance paying 29.9% interest. Phew, that's a LOT of money to pay them on a card you no longer use, in interest alone.

I'd pay wayyyyyyyy down that balance, and continue paying, on a declining balance basis(eg: pay 2/3 now; 1/3 of the balance of the next statement; 1/3 of the next balance statement; 1/3 of the next statement balance, etc).

May not be the best way, but that's the way I would consider handling it, if it were me. But of course, our situations are different. Plus I still consider myself a newbie. Just my 2 cents worth.

[Anonymous]

Sylviatob -- Thanks but I do have the cash in hand to pay off the whole balance now. I was just posting here to see if I just just pay the **bleep** thing or see if I could save some money.


RobertEG -- I am not looking for more credit cards, I am good with the two I have and they will also be paid off by the end of October. My goal is to get rid of my debt and have a better credit rating to buy that house in 9 - 15 months.

Thanks for the great info, please keep it coming!

[Anonymous]

Rochester, I suggested doing that, as opposed to paying it all off, because it would still show utilization on that card, which the CRA's love to see. It also shows them that you are using your credit cards responsibly, as THEY see it. Just a ploy to improve your credit score.

[sl]

If the account is closed, I would pay down the entire amount and get it out of your hair. I would not recommend asking for a settlement as that would and will hurt your credit score.  By paying it off in full, it will most likely up your FICO score. 

good luck.